Dropbox - CH 21 Jobs & Infl - University of Lethbridge Department of Economics ECON 1012 Introduction to Microeconomics Instructor Michael G Lanyi

Dropbox - CH 21 Jobs & Infl - University of Lethbridge...

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Unformatted text preview: University of Lethbridge — Department of Economics ECON 1012 — Introduction to Microeconomics Instructor: Michael G. Lanyi Chapter 21 — Jobs & Infl l) The working—age population is the total number of people A) in the labour force, aged 15 years and over, and employed. B) in the labour force. C) in the labour force, aged 15 years and over. D) aged 15 years and over. E) in the labour force who are employed. Topic: Employment and Unemployment 2) Which one of the following people would be counted as unemployed in Canada? A) Kathy has stopped looking for work since she was unable to find a suitable job during a one —month search. B) Sharon is a college student with a job. C) Benoit who was laid off when his firm closed down 2 months ago and has not been looking for work as he is going back to school. D) Christos has been laid off from his job a month ago, and has not been looking for a new job as he is waiting for a severance package from his former employer. E) Veena is not working, but she is looking for a full—time job. Topic: Employment and Unemployment 3) Which one of the following people would be counted as unemployed in Canada? A) Sharon recently began looking for work after staying at home for 10 years to look after her children. B) Maurice is on a 2 month vacation out of the country but is still looking for a job using the internet. C) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two —month search. D) Doris works only 5 hours a week but is looking for a full —time job. E) Taylor is a homemaker. Topic: Employment and Unemployment 4) Which one of the following people would be counted as unemployed in Canada? A) Ruth is a 14—year—old student and has been looking for an after—school job every day for the past month. B) Ron has quit looking because he believes that there is no work available for him. C) Simone is currently working but expects to be laid off by the end of the month, before next month's survey can be completed. D) Sarah has been looking for a job but is taking a month—long break from the job—seeking effort due to her lack of skills. E) Rebekah is a recent graduate looking for work. Topic: Employment and Unemployment 5) Which one of the following people would be counted as unemployed in Canada? A) a person who has been seeking a job for the last six months, but recently gave up looking because he was discouraged by his job prospects B) a person who will be starting a new job in 6 months C) a person who has been laid off for 10 weeks and is not looking for a job because he is waiting to be called back to his old job D) a person who expects to be laid off by the end of the month before next month's survey can be completed E) a part—time worker who repeatedly expresses a desire to become a full —time worker Topic: Employment and Unemployment 6) The labour force is A) the total number of people employed. B) the total number of people in the working—age population who are either employed or unemployed. C) the total number of people in the working—age population who are employed. D) the total number of people aged 15 years and over. E) none of the above. Topic: Employment and Unemployment 7) The unemployment rate is defined as the number of A) unemployed people divided by the number of employed people. B) unemployed people divided by the sum of the people employed and the people unemployed. C) employed people divided by the number of people in the country. D) unemployed people divided by the number of people in the country who are employed. E) unemployed people divided by the number of people in the country. Topic: Employment and Unemployment 8) Counting involuntary part—time workers as unemployed would A) raise the full employment rate. B) not change the actual unemployment rate. C) raise the natural unemployment rate. D) raise the measured unemployment rate. E) lower the measured unemployment rate. Topic: Employment and Unemployment 9) Who of the following would be counted as unemployed in Canada? A) Sharon is a college student with no job. B) Doris only works five hours a week but is looking for a full—time job. C) Maurice has been laid off from his job for 20 weeks but expects to be called back soon. D) Bogdan has been laid off from his job but does not expect to be called back, and is not looking. E) Kanhaya has stopped looking for work since he was unable to find a suitable job during a two —month search. Topic: Employment and Unemployment 10) Who of the following would be counted as unemployed in Canada? A) Vik, who has been staying at home watching "The Old and the Boring" soap opera, and not searching since he was laid off at the flour mill. B) James, who is a full—time student looking for a part—time job. C) Emmanuel, who lost his job at the steel plant when an automated assembly line was introduced six months ago, and has been job searching every day. D) Caitlin, who is 14 years old, and looking for a babysitting job. E) Youngrnin, who is a part—time hamburger flipper looking for a full—time job. Topic: Employment and Unemployment 11) If the working—age population increases, then A) the labour force participation rate will increase. B) the total number of people aged 15 years and above will increase. C) the number of people employed will increase. D) the size of the labour force will increase. E) the unemployment rate will increase. Topic: Employment and Unemployment 12) In a country with a working—age population of 20 million, 13 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part—time, half of whom wish to work full—time. The size of the labour force is A) 20 million. B) 11.5 million. C) 13 million. D) 15.5 million. E) 14.5 million. Topic: Employment and Unemployment 13) In a country with a working—age population of 20 million, 13 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part—time, half of whom wish to work full—time. The labour force participation rate is A) 72.5 percent. B) 57.5 percent. C) 65 percent. D) 75.5 percent. E) none of the above. Topic: Employment and Unemployment 14) In a country with a working—age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part—time, half of whom wish to work full—time. The unemployment rate is A) 15.4 percent. B) 10 percent. C) 10.3 percent. D) 11.1 percent. E) none of the above. Topic: Employment and Unemployment 15) In a country with a working—age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part—time, half of whom wish to work full—time. The employ‘ment—to—population ratio is A) 65 percent. B) 57.5 percent. C) 72.7 percent. D) 75.5 percent. E) none of the above. Topic: Employment and Unemployment 16) In a country with a working—age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part—time, half of whom wish to work full—time. The involuntary part—time rate is A) 6.3 percent. B) 2.8 percent. C) 5 percent. D) 12.5 percent. E) none of the above. Topic: Employment and Unemployment 17) In a country with a working—age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part—time, half of whom wish to work full—time. The labour force is A) 18 million. B) 20 million. C) 22 million D) 30 million. E) 16 million. Topic: Employment and Unemployment 18) In a country with a working—age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part—time, half of whom wish to work full—time. The labour force participation rate is A) 60 percent. B) 66.7 percent. C) 53.3 percent. D) 73.3 percent E) none of the above. Topic: Employment and Unemployment 19) In a country with a working—age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part—time, half of whom wish to work full—time. The unemployment rate is A) 9.1 percent. B) 10 percent. C) 14.3 percent. D) 11.1 percent. E) none of the above. Topic: Employment and Unemployment 20) In a country with a working—age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part—time, half of whom wish to work full—time. The employment—to—population ratio is A) 60 percent. B) 66.7 percent. C) 73.3 percent. D) 53.3 percent. E) none of the above. Topic: Employment and Unemployment 21) In a country with a working—age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part—time, half of whom wish to work full—time. The involuntary part—time rate is A) 4.5 percent. B) 10 percent. C) 4.8 percent. D) 5 percent. E) none of the above. Topic: Employment and Unemployment 22) Which of the following reflects an increase in unemployment? A) an increase in the labour force participation rate B) an increase in the involuntary part—time rate C) a decrease in the unemployment rate D) an increase in the employment—to—population ratio E) none of the above Topic: Employment and Unemployment 23) The labour force participation rate is A) the percentage of the working—age population who are employed. B) the percentage of the labour force who are employed. C) the percentage of the labour force who are unemployed or employed. D) the percentage of the working—age population who are unemployed or employed. E) none of the above. Topic: Employment and Unemployment 24) The employment—to—population ratio is A) the percentage of the working—age population 1who are employed. B) the percentage of the labour force who are unemployed or employed. C) the percentage of the labour force who are employed. D) the percentage of the working—age population who are unemployed or employed. E) none of the above. Topic: Employment and Unemployment 25) In a recession, typically A) unemployment rises. B) the employment—to—population ratio decreases. C) the employment—to—population rate rises. D) the labour force participation rate rises. E) both A and B are correct. Topic: Employment and Unemployment 26) In a recession, typically A) the labour force participation rate increases. B) the employment—to—population ratio decreases. C) the employment—to—population ratio increases. D) unemployment decreases. E) none of the above. Topic: Employment and Unemployment 27) Complete the following sentence. In an expansion, typically A) unemployment increases. B) the labour force participation rate increases. C) the employment—to—population ratio decreases. D) employment decreases. E) both E and D are correct. Topic: Employment and Unemployment 28) Which of the following pieces of information do you need to calculate the labor force participation rate? I. the number of employed persons H. the number of unemployed persons IEL the population IV. the working age population A) I, II and IV E) Iand III C) Iand II D) I, II and Ill E) all of the above Topic: Employment and Unemployment 29) Since 1960, Canadian labor force participation rate has and the unemployment rate has A) trended higher; trended lower B) trended lower; varied over the business cycle C) trended higher; varied over the business cycle D) trended higher; trended higher E) varied over the business cycle; trended higher Topic: Employment and Unemployment 30) If the people who take early retirement are not counted in the working —age population, then A) the labor force participation rate would be higher. B) the unemployment rate would be lower. C) the labor force participation rate would be less. D) the unemployment rate would be higher. E) none of the above. Topic: Employment and Unemployment 31) If the labor force participation rate is rising and the working —age population is not changing, then the A) size of the labor force is falling. B) size of the labor force is rising. C) number of employed people must be increasing. D) number of unemployed people is rising and the size of the labor force is falling. E) number of unemployed people is falling and the size of the labor force is rising. Topic: Employment and Unemployment 32) The largest source of unemployment is A) re—entrants to the labour force. B) job losers. C) involuntary part—time workers. D) job leavers. E) entrants to the labour force. Topic: Unemployment and Full Employment 33) In a country with a working—age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part—time, half of whom wish to work full—time. It 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate? A) 9.4 percent B) 11.1 percent C) 5.6 percent D) 8.3 percent E) none of the above Topic: Unemployment and Full Employment 34) In a country with a working—age population of 22 million, 16 million are employed, 2 million are unemployed, and 1 million of the employed are working part—time, half of whom wish to work full—time. It 500,000 of those unemployed are cyclically unemployed, what is the natural unemployment rate? A) 8.3 percent B) 5.6 percent C) 11.1 percent D) 9.4 percent E) none of the above Topic: Unemployment and Full Employment 35) In a country with a working—age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part—time, half of whom wish to work full—time. If 1 million of those unemployed are cyclically unemployed, what is the natural unemployment rate? A) 5 percent B) 11.1 percent C) 5.6 percent D) 6.7 percent E) none of the above Topic: Unemployment and Full Employment 36) Which one of the following people is structurally unemployed? A) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job B) a Nova Scotia fishery worker who is searching for a better job closer to home C) an office worker who has lost her job because of a general slowdown in economic activity D) a steel worker who is laid off but who expects to be called back soon E) none of the above Topic: Unemployment and Full Employment 37) Unemployment caused by permanently decreased demand for horse —drawn carriages is an example of A) frictional unemployment. B) discouraged unemployment. C) seasonal unemployment. D) structural unemployment. E) cyclical unemployment. Topic: Unemployment and Full Employment 38) Which one of the following people is cyclically unemployed? A) a Nova Scotia fishery worker who is searching for a better job closer to home B) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job C) a steel worker who is laid off but who expects to be called back soon D) an office worker who has lost her job because of a general slowdown in economic activity E) none of the above Topic: Unemployment and Full Employment 39) Which one of the following people is frictionally unemployed? A steel worker who A) decides to leave the labour force and become a full—time ballet student. B) becomes discouraged and stops looking for a job. C) is laid off but expects to be called back soon. D) loses her job because of technological change. E) gives up her job because she retires. Topic: Unemployment and Full Employment 40) If the economy is at full employment, then A) the entire population is employed. B) the only unemployment is frictional unemployment plus discouraged workers. C) the entire labour force is employed. D) all unemployment arises from normal frictions and structural change. E) the unemployment rate is less than 3 percent. Topic: Unemployment and Full Employment 41) The natural unemployment rate is A) equal to 0 percent. B) the rate at which cyclical unemployment is equal to 0 percent. C) the same as the cyclical unemployment rate. D) the rate at which cyclical unemployment is equal to 6 percent. E) none of the above. Topic: Unemployment and Full Employment 42) At full employment, there is no A) cyclical unemployment. B) structural unemployment. C) frictional unemployment. D) natural unemployment. E) unemployment. Topic: Unemployment and Full Employment 43) A zero percent unemployment rate A) is the only efficient unemployment rate. B) is one of the economic goals of the Canadian government. C) is not consistent with the notion of full employment. D) was last achieved during World War II when everyone was willing to work at the going wage rate to end the war. E) would alleviate scarcity. Topic: Unemployment and Full Employment 44) Complete the following sentence. Full employment A) occurs when all unemployment is frictional and discouraged. B) occurs when all unemployment is cyclical and structural. C) occurs when there is zero unemployment. D) occurs when there is zero frictional unemployment. E) occurs when there is zero cyclical unemployment. Topic: Unemployment and Full Employment Use the table below to answer thefbllowing questions. Table 21.2.1 This table shows the answers given by interviewees to the Labour Force Survey Person A Person B Person C Person D Person E Now that kids are in school full—time, this person is looking for work and has been interviewed for three jobs over the past 2 weeks. This person has been laid off but expects to be called back in a few weeks, just as soon as the economy improves. This person has just graduated from university and will start a new job in 8 weeks. In the meantime, this person is surveying local drinking establishments. This person was laid off last year when new equipment at the plant reduced the number of jobs. Since his layoff, this person has been constantly job searching. This economics graduate is working two nights a week at the 7—11, but wants full—time work as an economist. 45) In Table 21.2.1, which person is frictionally unemployed? A) A B) B C) C D) E E) none of them Topic: Unemployment and Pull Employment 46) In Table 21.2.1, which person is structurally unemployed? A) A B) B C) C D) D E) none of them Topic: Unemployment and Pull Employment 47) In Table 21.2.1, which person is cyclically unemployed? A)A B)B C)C D)DandB E)AandC Topic: Unemployment and Pull Employment 10 48) In Table 21.2.1, which person is not included in the calculation of the natural unemployment rate? A) A B) B and E C) C D) D and B E) A and C Topic: Unemployment and Full Employment 49) In Table 21.2.1, which person is a discouraged worker? A) A B) B C) C D) D E) none of them Topic: Unemployment and Full Employment 50) Structural unemployment arises in part because A) of unrealistic wage expectations. B) of technological change. C) people become discouraged when they cannot find jobs. D) people will not quit their present jobs until they can find suitable employment elsewhere. E) there are not enough jobs available. Topic: Unemployment and Full Employment 51) Full employment does not mean that there is zero unemployment because A) of unrealistic wage expectations. B) some cyclical unemployment is always present. C) of the existence of discouraged workers. D) business fluctuations are inevitable. E) some frictional unemployment is always present. Topic: Unemployment and Full Employment 52) In a dynamic economy under ideal conditions, the unemployment rate A) increases as the price level rises. B) is greater than zero percent due to natural unemployment. C) should be zero. D) averages 6 percent. E) decreases as the price level falls. Topic: Unemployment and Full Employment 53) If the economy is operating at full employment, then A) the unemployment rate is zero. B) everyone who wants a job has one. C) the entire labour force is employed. D) the unemployment rate is approximately 3 percent. E) none of the above. Topic: Unemployment and Full Employment 11 54) Jesse just graduated from university, and is looking for her first job. Iesse is A) structurally unemployed....
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